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Keefe, Bruyette, & Woods Jockeys Estimates on ANH and IVR (ANH, IVR)

Keefe, Bruyette, & Woods is out with a research report this morning, where it adjusts its estimates on mortgage finance company’s Anworth Mortgage Asset Corp. (NYSE: ANH) and Invesco Mortgage Capital Inc. (NYSE: IYR).

The KBW analysts said, “We expect the Agency MBS REITs to report generally weaker earnings in 2Q10 relative to 1Q10 given continued-high levels of prepayments during the quarter. All the companies that we cover in this note have already reported their dividends, which are usually a good proxy for operating earnings so we would not expect any major surprises this quarter.”

“After 2Q, we expect the impact of GSE buyouts to be largely done, so earnings and dividends should trend up, although the recent decline in interest rates and spike in Agency MBS prices will likely reduce spreads on new investments. However, as most of the sector is trading at or below estimated book value, we remain comfortable with our positive outlook for the sector.”

ANH’s current quarter was revised from $0.27 per shares to $0.25 per shares, whereas its 2010 EPS estimates were revised from $1.08 per shares to $1.04 per share. IVR’s current quarter estimates were revised from $0.77 per shares to $0.82 per share, whereas its 2010 EPS estimates were revised from $3.15 to $3.25.